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Financial analysis ­ introduction > The general approach to financial analysis - Pg. 144

accounts demystified Wingate's P&L Distinguishing between the enterprise and the funding structure on the P&L is extremely simple. All the items down to operating profit are part of the enterprise. None of them would be affected by a change in the funding structure. Operating profit is the profit made from operating the assets, as you would expect. All the items after operating profit such as interest, tax, dividends are related to the funding structure. Wingate's cash flow statement Similarly, if you look at the cash flow statement on pages 247­8, you will see that the six different headings fall into one or other of our two categories: `Operating activities' and `Capital expenditure' relate to the enterprise; `Returns on investments and servicing of finance', `Taxation', `Equity dividends paid' and `Financing' relate to the funding structure.